Maria died two years after her retirement. At the time of her death at age 67, she

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Maria died two years after her retirement. At the time of her death at age 67, she was covered by the two annuities listed below.
• An annuity purchased by Maria’s father providing benefits to Maria upon her attaining age 65. Upon Maria’s death, survivor benefits are payable to her sister. The sister’s total benefits are valued at $45,000.
• An annuity purchased by Maria’s former employer under a qualified plan to which only the employer contributed. Benefits became payable to Maria upon her retirement. Upon Maria’s death a survivor annuity valued at $110,000 is payable to her son.
a. What is the amount of the inclusion in Maria’s gross estate with respect to each annuity?
b.
How would your answer for the first annuity change if Maria had instead purchased the annuity?
c.
How would your answer for the second annuity change if the employer had instead made 70% of the contributions to the qualified plan and Maria had made the remaining 30%? Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...
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Federal Taxation 2016 Comprehensive

ISBN: 9780134104379

29th Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

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